How Much Can the Swiss National Bank Contribute to the Financing of the Swiss Old Age Insurance (AHV)?

Abstract

The ageing of the Swiss population poses a challenge for the financing of the Swiss Old Age Insurance (AHV). It has therefore been suggested that the Swiss National Bank (SNB) transfer part of its assets to a new AHV demography fund, the income of which could be used to finance the AHV. In this paper it is argued that the SNB could contribute CHF 100 to 150 billion worth of assets to the AHV without restricting the scope for monetary policy.

Keywords: old age insurance, central bank assets, monetary policy, Schweizerische Alters- und Hinterlassenenversicherung (AHV)

JEL Classification: E00, E24, E50, E58, E60, E63, G22, H10